So if I countinue to live here on H1, my kids would be a eligible for PR if they go to college

As per the bill, kids on H-4 and H-1B workers will be paying in-state tuition fee. I don't think the bill relates the PR with going to college. But not entirely sure about this….

Either way, it would only matter if this bill passes the House and the Senate and then signed by the President. All this is very unlikely in a situation where there are bigger fishes to fry on the immigration debate. But it is possible that the House leadership may include portions of this bill in the CIR to get the votes from the sponsors (Congressmen) of this bill, in support of CIR.